Freshwater meets Saltwater

The other day John Cochrane showed his “freshwater colors” answering to Krugman:

My worries about inflation do not come from monetary policy. I’ve been as outspoken on the view that monetary policy is ineffective at the zero bound as the most solid Keynesian.  In the WSJ,  “Reserves that pay market interest are not inflationary. Period.” If you bothered to read anything before venting, you’d know that.

Milton Friedman “turned in his grave”!

Now they only have to agree on the FTPL.


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